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There are a lot of elements to consider when running a business,
and staying on top of quality control for all of your products
and supplies can
sometime slip from the list. But a product recall can damage both
your bottom line and your reputation.

Consider Lululemon, the popular Vancouver, British Columbia-based
athletic apparel retailer. It came under fire last month when
customers complained about the sheerness of the brand's popular
black luon yoga pants. The company cited incomplete testing
protocols which led to an "unacceptable level of sheerness" in 17
percent of the nylon/Lycra pants.

Lululemon said the problem was caused by incomplete testing
protocols and fabric that was on the lower end of their tolerance
scale, though how the flawed pants made it to store shelves is
still under investigation. The company
recalled the pants and offered customers a refund, but it's
too early to tell how much damage the incident will cause
Lululemon.

So what can you do to minimize problems with your products and
ensure your company doesn't face a similar embarrassment? We
spoke with Ed Creedle, senior risk control specialist with
Hartford, Conn.-based Travelers Insurance, to find out what
businesses need to know.

1. Determine product specifications and requirements for
production.
When creating a new product, pay attention to design aspects such
as color, texture and size. Make sure to ensure the product
conforms to industry code standards. The American National Standards
Institute provides information about standards for a
number of industries.

2. Establish relationships with your
suppliers.
Most products have parts and materials coming from various
suppliers, Creedle says. It's important to ensure that a supplier
can provide the exact materials that you need. "Companies need
formal agreements with legal review and specific language setting
forth [their] expectations from the supplier and the consequences
for not meeting those requirements," Creedle says.

If your products are coming from overseas, Creedle suggests
visiting the plant at least once a year, or hiring a third-party
to conduct quality audits on your behalf.

3. Implement quality control standards.
Once component parts start coming in from your suppliers, you
need to be able to track where the materials are coming from,
Creedle says. Businesses need to have a quality control system in
place to address any non-conforming goods. "It's not uncommon to
get materials that don't meet the [product] specifications,"
Creedle says.

It's important to inspect materials to ensure they meet your
specifications. If you're dealing with high volume, Creedle
suggests implementing a sampling plan, to determine from a sample
of the products, whether the goods conform with product
specifications. Sampling plans for various industries are
available online, and organizations like the American Society for Quality
(ASQ) provide resources for developing a quality control plan.

4. Test your system.
Creedle recommends conducting a mock recall once or twice a year
to make sure your quality control system works as it should. Such
tests can be done in-house or with the help of trusted customers
by selecting a product and tracking it from materials to store
shelves. You should also trace a lot of products and verify that
communications channels are working properly.